September 2016

September 6, 2016 (Mergers, Megaphones, Moderators)

BENTON'S COMMUNICATIONS-RELATED HEADLINES for TUESDAY, SEPTEMBER 6, 2016

This week’s events https://www.benton.org/calendar/2016-09-04--P1W

AGENDA
   High-stakes battles engulf FCC

OWNERSHIP
   Justice Department Requires Divestitures in Order for Nexstar to Proceed with Media General Acquisition - press release
   Sisyphus Re-re-re-Dux: FCC “Concludes” a Decade of Quadrennial Reviews…For Now - CommLawBlog analysis [links to Benton summary]

INTERNET/BROADBAND
   Giving megaphones to the disenfranchised: Why Internet rights are human rights -- Alberto Cerda Silva, Ford Foundation
   Broadband Needs Assessment and Planning for Community Anchor Institutions - Kelleigh Cole analysis
   What’s next for Internet.org after yesterday’s SpaceX explosion?
   Alaska Plan is a funding win that 'future proofs' networks, Alaska Telephone Association members say
   To Nashville, with love - Google Fiber press release [links to Benton summary]

ELECTIONS 2016
   Commission names moderators for presidential debates
   Putin Says DNC Hack Was a Public Service, Russia Didn’t Do It [links to Bloomberg]
   How Conservative Media Learned to Play Politics - Politico op-ed [links to Benton summary]
   Candidates struggle with new social media [links to Hill, The]

TELEVISION
   Appeals Court Dismisses Time Warner Cable Set-Top Law
   Over-the-Top Video Subscriptions Have Climbed 12% Since 2014 [links to Multichannel News]
   Consumer Video Choice Coalition Pitches FCC on Must-Haves in Pay-TV Set-Top Approach [links to Broadcasting&Cable]
   Charter-Tribune Deal Puts Dodgers on Air [links to Broadcasting&Cable]
   Amazon Using Twitch Audience as Focus Group for New TV Shows [links to AdAge]

WIRELESS/SPECTRUM
   FCC Posts Tutorial for TV Station Auction, Take Two [links to Broadcasting&Cable]
   Samsung will recall Galaxy Note 7 because of exploding batteries [links to Ars Technica]

SECURITY/PRIVACY
   Apple, Google Back Microsoft Over ‘Sneak-and-Peek’ Searches [links to Benton summary]
   Golden State Warriors Android app constantly listens to nearby audio, fan says [links to Benton summary]

CONTENT
   Periscope will now feature sponsored live video broadcasts [links to Mashable]
   3 Digital Decisions You'll Regret Someday [links to Fast Company]

JOURNALISM
   The rise of mobile could create “a second-class digital citizenship” of less informed news consumers - analysis
   In Chicago, student paper’s traffic spikes with coverage of dean’s controversial note [links to Columbia Journalism Review]

LABOR
   The Revenge of Roger’s Angels: How Fox News women took down the most powerful, and predatory, man in media. [links to New York Magazine]

GOVERNMENT & COMMUNICATIONS
   The Big Redesign: What's Next for Government Websites? [links to Government Technology]
   White House to Host Its Own SXSW on Oct 3 [links to nextgov]
   Assessment and Collection of Regulatory Fees for Fiscal Year 2016 [links to Federal Communications Commission]
   Secretive foe attacks Google over government influence [links to Benton summary]

COMPANY NEWS
   Alphabet and Google’s very bad no good summer [links to Verge, The]

STORIES FROM ABROAD
   Three key takeaways from Europe’s new net neutrality guidelines - AEI op-ed [links to Benton summary]
   Irish cabinet to back Apple appeal of $14.5B tax bill [links to Hill, The]
   India's richest man offers free 4G to one billion people [links to Benton summary]
   EU Defends Proposals Granting Publishers New Rights [links to Wall Street Journal]

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AGENDA

FCC AGENDA
[SOURCE: The Hill, AUTHOR: David McCabe]
Policy battles that have been mounting for months are poised to engulf the Federal Communications Commission in the final months of the Obama Administration. Sept 8 marks the deadline for FCC Chairman Tom Wheeler to say whether he will bring any of three major policy proposals to a vote at the commission’s meeting in September. Major corporate players have a stake in all three debates. One proposal could give Americans more ways to watch television and, possibly, replace their living room set-top box. A second would crack down on how internet providers use customers’ personal data. And a third has the potential to bring changes to an obscure but valuable market for broadband connections that are used by big business.
benton.org/headlines/high-stakes-battles-engulf-fcc | Hill, The
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OWNERSHIP

DOJ REQUIRES DIVESTITURES IN ORDER FOR NEXSTAR TO PROCEED WITH MEDIA GENERAL ACQUISITION
[SOURCE: Department of Justice, AUTHOR: Press release]
The Department of Justice announced that it will require Nexstar Broadcasting Group to divest seven broadcast television stations in order to proceed with its $4.6 billion acquisition of Media General Corporation. The department said that without the required divestitures, the prices for broadcast television spot advertising and the fees charged to multichannel video programming distributors (MVPDs) – such as cable and satellite providers – for the retransmission of broadcast television programming to MVPD subscribers would likely increase in six designated market areas (DMAs) located across the United States. The Justice Department’s Antitrust Division filed a civil antitrust lawsuit Sept 2 in the US District Court of the District of Columbia to block the proposed transaction and simultaneously filed a proposed settlement that, if approved by the court, would resolve the competitive harm alleged in the lawsuit. The department’s complaint alleges that the proposed transaction would lessen competition in the sale of broadcast television spot advertising and the licensing of broadcast television programming to MVPDs for retransmission to MVPD subscribers in the following DMAs: Roanoke-Lynchburg (VA), Terre Haute (IN), Fort Wayne (IN), Green Bay-Appleton (WI), Lafayette (LA), and Davenport (IA)/Rock Island-Moline (IL)(“Quad Cities”). As a result of the acquisition, Nexstar would control between 41 and 100 percent of the broadcast television station gross advertising revenues in these six DMAs and at least two broadcast television stations affiliated with the four major national television networks.
benton.org/headlines/justice-department-requires-divestitures-order-nexstar-proceed-media-general-acquisition | Department of Justice
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INTERNET/BROADBAND

GIVING MEGAPHONES TO THE DISENFRANCHISED: WHY INTERNET RIGHTS ARE HUMAN RIGHTS
[SOURCE: Ford Foundation, AUTHOR: Alberto Cerda Silva]
[Commentary] In modern society, freedom of expression has both individual and social values. On one side, democratic governments are prohibited from censorship, but on the other, freedom of expression requires that they promote speech of marginalized communities to ensure all citizens’ voices are heard. As Yale law professor Owen Fiss puts it, free speech means an uninhibited, robust, and wide-open debate, especially when vested interests attempt to prevent such a debate. In his book, The Irony of Free Speech, which examines both sides of the issue, Fiss goes as far as suggesting that the promotion of free speech may require governments to “hand out megaphones” – or provide all citizens with the resources they need to express themselves. In many ways, the Internet serves as that megaphone.The United Nations Human Rights Council recently adopted a landmark resolution protecting online freedom of expression as a human right. The resolution condemns measures that intentionally prevent or disrupt access to information online as a human rights violation and calls on governments to refrain from these measures. The resolution was prompted when the governments of Uganda and Ghana separately shut down the Internet during election days, thereby purposely withholding important information from citizens and preventing inclusive freedom of expression online. Access to the Internet is key for the realization of human rights and freedom of expression in modern societies. Even more, as online services proliferate, Internet access becomes a prerequisite for enjoying cultural, social, and economic rights. With this UN resolution, governments are not only forbidden to shut down the Internet or block information, but also required to develop and implement public policies that assure greater access to the Internet, whether in the Amazonian forest, rural Oaxaca, or urban Kibera. Access to the Internet provides all citizens the right to express themselves and contribute to their societies.
benton.org/headlines/giving-megaphones-disenfranchised-why-internet-rights-are-human-rights | Ford Foundation
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NEEDS ASSESSMENT AND PLANNING
[SOURCE: Benton Foundation, AUTHOR: Kelleigh Cole]
[Commentary] Broadband needs assessment and planning for community anchor institutions (CAIs) is one of the most critical steps that state and local governments can take to improve broadband connectivity and promote economic growth in their regions. Conducting an inventory of the locations and speeds of existing broadband services for CAIs – and identifying the gaps in broadband coverage – can help attract new funding and target investments to the areas with the most need. Conducting an inventory among all CAIs can also facilitate meaningful partnerships and strategies to ensure that the entire community has adequate broadband connectivity. Developing and implementing a broadband plan is time-consuming, but absolutely essential. Failing to conduct a needs assessment of CAIs’ present and future broadband services can lead to missed opportunities, unmet needs, or wasteful investment. Failing to include all stakeholders, including the broadband providers, in the planning process can make the difference between a long-lasting, sustainable project and a project that results in stranded assets. Perhaps the most important recommendation is for planners to gather detailed, granular data about the broadband assets in an area. They shouldn’t rely on generalized descriptions of whether an area is served, unserved, or underserved, especially because CAIs’ broadband needs are very different from residential and business needs.
https://www.benton.org/blog/broadband-needs-assessment-and-planning-comm...
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SPACEX AND INTERNET.ORG
[SOURCE: The Verge, AUTHOR: Russell Brandom]
The SpaceX Falcon 9 rocket explosion will be a major setback for Internet.org’s ambitions in sub-saharan Africa. The satellite destroyed this week, called Amos 6, was set to be used in an entirely different project. Amos 6 would have provided backhaul for Internet.org’s Express Wi-Fi system, which connects rural internet providers to the broader internet. Anyone connecting to an Express Wi-Fi provider will experience the same, full internet as anyone else, with no limitations or favored apps. As a result, it’s been able to operate even in countries that rejected Free Basics, including India. Free Basics typically focuses on areas where internet infrastructure is available, but access is too expensive for much of the population. By restricting access, Free Basics can provide more people with access to basic services, even as it runs the risk of creating a multi-tiered internet. Express Wi-Fi tackles a different problem. Instead of focusing on areas that are already connected, Express Wi-Fi looks to build out back-end infrastructure to areas too poor and remote for a conventional telecom to justify the investment. Once the backhaul connectivity is available, local entrepreneurs take on the work of bringing it to the average consumer — but it’s only possible because of the infrastructure provided by Internet.org.
benton.org/headlines/whats-next-internetorg-after-yesterdays-spacex-explosion | Verge, The
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ALASKA PLAN IS A FUNDING WIN THAT 'FUTURE PROOF' NETWORKS
[SOURCE: Fierce, AUTHOR: Samantha Bookman]
The Alaska Plan approved recently by the Federal Communications Commission is going to work, said the Alaska Telephone Association (ATA), the leading proponent of the funding plan, mainly because it provides “predictable [Universal Service Fund] support payments” that are critical to keeping carriers in business in the United States’ highest-cost telecommunication operating area. Under the new plan, 15 wireline and wireless providers in the state will receive over $1 billion in federal funds over a 10-year period to invest in their telecommunications infrastructure. “Alaska represents the highest-cost local telecom construction and ongoing operating costs in the nation,” said Ed Cushing, president of the ATA. “Providing rural Alaskans with high-quality, affordably-priced broadband service simply is not possible without the predictable USF support payments secured by the FCC's approval of Alaska Plan." Under the plan, which differs quite a bit from other universal service funding in the lower 48 states, both wireline and wireless carriers in the state will receive funding that is fixed at adjusted 2011 rates.
benton.org/headlines/alaska-plan-funding-win-future-proofs-networks-alaska-telephone-association-members-say | Fierce
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TELEVISION

APPEALS COURT DISMISSES TIME WARNER CABLE SET-TOP LAW
[SOURCE: Broadcasting&Cable, AUTHOR: John Eggerton]
The Federal Communications Commission is trying to spur separate competition to cable-leased set-tops in the delivery of video programming, but according to one federal court, the two are inseparable.A panel of the US Court of Appeals for the Second Circuit has upheld a lower court decision dismissing a class action suit against Time Warner Cable for allegedly tying premium cable services to leasing cable boxes, finding that for the purposes of antitrust law, at least, cable boxes and the premium cable service they transmit are not separate products so can't be anticompetitively tied. "A cable box must be cable-provider-specific, like the keys to a padlock," the court found. "Although the plaintiffs frame their claim as a tie-in, the core issue is a cable provider's right to refuse to enable cable boxes it does not control to unscramble its coded signal." The decision was handed down Sept 2.
benton.org/headlines/appeals-court-dismisses-time-warner-cable-set-top-law | Broadcasting&Cable
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ELECTIONS 2016

COMMISSION NAMES MODERATORS FOR PRESIDENTIAL DEBATES
[SOURCE: Politico, AUTHOR: Hadas Gold]
NBC's Lester Holt, ABC's Martha Raddatz, CNN's Anderson Cooper, Fox News' Chris Wallace and CBS' Elaine Quijano will moderate presidential and vice presidential debates this fall, the Commission on Presidential Debates announced. Holt, anchor of NBC's "Nightly News,” will moderate the first debate at Hofstra University in New York on Sept. 26, which will be a traditional debate divided into six segments of 15 minutes each on major topics to be determined by Holt. Quijano, an anchor on CBS' live streaming service CBSN, will moderate the vice presidential debate on Oct. 4 at Longwood University in Virginia, which will be a traditional debate as well — divided into nine timed segments of 10 minutes each. Raddatz, ABC's Chief Global Correspondent and co-anchor of "This Week,” along with CNN anchor Cooper, will moderate a town-meeting style debate on Oct. 9 at Washington University in St. Louis. There, the questions will be posed directly by citizen participants made up of uncommitted voters based on topics "of broad public interest as reflected in social media and other sources." Wallace, host of "Fox News Sunday,” will become the first Fox News host to moderate a general election debate since the network's founding. He will host the final presidential debate on Oct. 19 at the University of Nevada Las Vegas. The format of the final debate will be the same as the first.
benton.org/headlines/commission-names-moderators-presidential-debates | Politico
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JOURNALISM

RISE OF MOBILE COULD CREATE "SECOND CLASS DIGITAL CITIZENSHIP" OF LESS INFORMED NEWS CONSUMERS
[SOURCE: Nieman, AUTHOR: Ricardo Bilton]
Few would argue that, in theory, the sharp increase in mobile access hasn’t been a good thing for individuals and society as a whole. A more connected public is a more informed one, and increased mobile penetration means more people are able to connect more often than ever before. But according to a new report from Harvard’s Shorenstein Center on Media, Politics and Public Policy, there’s a dark side to the mobile revolution, which threatens to create a less engaged “second-class” citizenship of news consumers who don’t benefit from mobile adoption as much as everyone assumes. A more mobile public could, paradoxically, become a less informed one. Johanna Dunaway, the report’s researcher and a recent fellow at Shorenstein, blames smartphones themselves. Thanks to a combination of smaller screens, slower connection speeds, and the variable costs of data, mobile devices are, in many senses, imperfect vectors for news consumption. Using eye-tracking software, Dunaway and her fellow researchers were able to monitor how people engaged with news on their phones. Their conclusion: “We found that, relative to computer users, mobile users spent less time reading news content and were less likely to notice and follow links and to do so for longer periods of time,” Dunaway said. Their findings are supported by previous data from Pew Research, which found that, while most sites now get more visitors through mobile than desktop, readers tend to spend far less time reading while on mobile devices.
benton.org/headlines/rise-mobile-could-create-second-class-digital-citizenship-less-informed-news-consumers | Nieman
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Broadband Needs Assessment and Planning for Community Anchor Institutions

[Commentary] Broadband needs assessment and planning for community anchor institutions (CAIs) is one of the most critical steps that state and local governments can take to improve broadband connectivity and promote economic growth in their regions. Conducting an inventory of the locations and speeds of existing broadband services for CAIs – and identifying the gaps in broadband coverage – can help attract new funding and target investments to the areas with the most need. Conducting an inventory among all CAIs can also facilitate meaningful partnerships and strategies to ensure that the entire community has adequate broadband connectivity. Developing and implementing a broadband plan is time-consuming, but absolutely essential. Failing to conduct a needs assessment of CAIs’ present and future broadband services can lead to missed opportunities, unmet needs, or wasteful investment. Failing to include all stakeholders, including the broadband providers, in the planning process can make the difference between a long-lasting, sustainable project and a project that results in stranded assets. Perhaps the most important recommendation is for planners to gather detailed, granular data about the broadband assets in an area. They shouldn’t rely on generalized descriptions of whether an area is served, unserved, or underserved, especially because CAIs’ broadband needs are very different from residential and business needs.

High-stakes battles engulf FCC

Policy battles that have been mounting for months are poised to engulf the Federal Communications Commission in the final months of the Obama Administration. Sept 8 marks the deadline for FCC Chairman Tom Wheeler to say whether he will bring any of three major policy proposals to a vote at the commission’s meeting in September.

Major corporate players have a stake in all three debates. One proposal could give Americans more ways to watch television and, possibly, replace their living room set-top box. A second would crack down on how internet providers use customers’ personal data. And a third has the potential to bring changes to an obscure but valuable market for broadband connections that are used by big business.

Apple, Google Back Microsoft Over ‘Sneak-and-Peek’ Searches

Apple, Google and Amazon were among the tech leaders that rallied behind Microsoft in its battle to stop the US government from conducting so-called sneak-and-peek searches of customer e-mails. Microsoft and its supporters argue the very future of mobile and cloud computing is at stake if customers can’t trust that their data will remain private.

A group of 11 technology firms including Google said in its court filing that the federal law allowing the searches goes “far beyond any necessary limits” while infringing users’ fundamental rights. “The government’s ability to engage in surreptitious searches of homes and tangible things is practically and legally limited," the companies said in the filing. “But the act allows the government to search personal data stored in the cloud without ever notifying an account owner that her data has been searched."

Secretive foe attacks Google over government influence

Google has come under attack by a mysterious group that keeps mum about its sponsors while issuing scathing reports about the company’s influence on government. Among its recent revelations: High-ranking Google execs have had more than 20 "intimate" meetings with President Barack Obama, and the company has a revolving-door employment relationship with the federal government.

While the backers of the "Google Transparency Project" may be hidden, its purpose is clear, observers say: To offer purportedly objective research and commentary that can be used to thwart Google's burgeoning power in Washington (DC) and elsewhere, much as similar "think tanks" have sought to undermine the environmental lobby or promote development projects. When you're successful, you're on top of the hill. You become a target," said Michael Cusumano, a professor at the MIT Sloan School of Management who studies the technology industry.

India's richest man offers free 4G to one billion people

India's richest man is rolling out a $20 billion mobile network that could bring lightening-fast Internet to hundreds of millions of people.

Indian consumers are already celebrating the arrival of Mukesh Ambani's new Reliance Jio service, seizing on the billionaire's promise to deliver rock bottom prices and download speeds that will enable streaming video. The 4G network, which reaches more than 80 percent of the country, officially went live with a set of generous introductory offers. Indians will be able to use Jio for free until the end of 2016, and pay as little as 149 rupees ($2.25) a month for data after that. "Anything and everything that can go digital is going digital -- at an exponential rate," Ambani told investors last week at his company's annual general meeting. "Life is going digital."